Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Municipal Budget topic
No spam. Unsubscribe anytime.
Avon council reviews FY 2026/27 budget as health insurance drives proposed mill-rate rise
Summary
The Avon Town Council on Feb. 7 reviewed a proposed FY 2026/27 budget that would raise the mill rate from 30.72 to 32.42, citing a 4.66% overall increase driven chiefly by rising medical insurance costs; council will continue deliberations in February and return in March to finalize its recommendation to the Board of Finance.
The Avon Town Council on Feb. 7 received a budget overview from the Town Manager proposing a FY 2026/27 general fund budget that would increase spending by 4.66%, or about $5.2 million, and push the mill rate from 30.72 to 32.42.
The Town Manager told the council that the overall increase includes a 3.09 percentage-point rise tied to medical insurance and a 1.57 percentage-point rise for other costs. "The bottom line increase between Town, Board of Education, and Debt Service and Capital is about 4.66% year over year, about $5.2 million," the Town Manager said. The Grand List rose roughly one-half percent, he added.
Why it matters: The council said the medical insurance increase is the largest single driver of the proposed tax change. Budget documents presented at the meeting show the town and Board of Education apply allocation rates to projected plan enrollment; the FY 26/27 budget assumes higher claims, more catastrophic claimants and a substantial stop-loss premium increase, which together added roughly $3.44 million to employer costs in the draft plan.
Council members and staff asked specific questions about major budget lines. The Assistant Town Manager noted election-worker pay would rise with state election requirements, Information Technology netted a slight decrease year-over-year, and the Avon Senior Center budget was moved under Social Services. The Town’s pavement-management and capital program also drew attention: cash capital is proposed at $2.1 million for FY27, down about $620,000 from FY26, and the council discussed balancing capital needs with operating costs.
Public commenters urged caution about tax messaging and the town’s approach to seniors and service levels. Finance Director Tom DiStasio said the town’s investment assumptions used an average STIF (Short-Term Investment Fund) balance of roughly $50 million and an expected interest rate near 3.25%–3.5% when calculating anticipated interest income.
The council discussed using a portion of the Unassigned General Fund Balance to support capital projects; Chairman Polhamus characterized the $17.5 million balance as the town’s "rainy day fund," roughly two months of operating expenses under current policy. He said the council may leverage some fund balance to advance the Tillotson Road improvement but emphasized that decisions will depend on how revenues track this fiscal year.
Next steps: Council members said they will continue budget review through the rest of February and plan to finalize their position at the March meeting before forwarding recommendations to the Board of Finance.
